Re: Pay on deferred student loan?

If you can afford to pay....do it. The sooner you pay the less interest you'll accrue. I had rose-colored glasses on when I first started taking out my loans 4 years ago and I take out all Stafford loans - subsidized and unsubsidized - I took the option to pay the interest WHILE in school - which is completely optional. I get a bill every 3 months - which I'm not required to pay...wish I would have started paying the interest! I'm up to $3500 in interest already!

Re: Pay on deferred student loan?

I have a deferred student loan and I made a payment on it and noticed that my entire payment went to the principal and 0 to interest (subsidized loan). So, I will continue to make payments on it and if you are able to make at least the minimum payment by all means do!

Re: Pay on deferred student loan?

I hate to bump a 3 year old post but I have a similar question and I dont think the OP got the answer he/she was looking for.

Im in the same boat. I currently have a student loan. Just one and it isnt even $2500. Im still in school and really dont need to take anymore student loans. So my question is how will paying on a student loan while it is in the deffered status affect my credit. Will it hurt my score because the interest is out of the picture or will it help as if it was a normal loan with payments being made to it? If I made a few payments over the course of a few months and dropped it below 15% would this help my overall score?

Not to come off rude but I dont need to hear about the benefits of paying it off now vs later and saving money on interest. I am trying to raise my credit score (and have been for several years). Money isnt really an issue and if it came down to it I would take the interest if it meant raising my score.

Re: Pay on deferred student loan?

Payment of interest does not help your credit score. Your score doesn't know whether you paid interest or not. Do you have any other installment loans on your credit such as a car loan or mortgage? Remember, you don't have to defer your student loans. If money is not an issue, then you can call the bank, ask them to start payments now, and take your loan out of the deferment status. This way you are helping your score, and you are not blindly being charged interest.

Re: Pay on deferred student loan?

Its the same impact on your credit. While you are "deferred" the system is just reporting that you are "making your payments as agreed", even though there truly is no payment due. My advice is that if you have the funds, go ahead and make payments toward your loan as it will have the same positive impact as just holding your loan in deferment.

You should also check out the credit card section as revolving lines of credit do much more for your credit score than installment loans.

Re: Pay on deferred student loan?

You might be taking a ding on your score for having installment loans with balances close to the loan amount. I have several student loans in defferment and that is one of the reasons I was given for a lower score.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair
organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or
assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.